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by: HealthyWealthynWise
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Microfinance is a small loan that has become big business over the past few years. Not long ago, Matt Flannery had never heard of such a thing, but today, he and his wife Jessica Flannery are making the world a better place with Kiva, a company that puts poor people in touch with micro-lenders.

Microfinancing was started by Muhammad Yunus. Yunus is a professor of economics in the poor country of Bangladesh. The concepts he teaches in class aren't at all what he sees in the real world around him. Banks don't make loans to people who need $50 for supplies to start a street side business, so people have turned to loan sharks only to find themselves further in poverty.

Muhammad Yunus founded Grameen Bank to help fund microloans to poor up-and-comers. Because of his success he was awarded the Nobel Peace Prize in 2006. Yunus was scheduled to speak one night in 2004 at Stanford University. Jessica saw the announcement and convinced Matt (at the time, her fianc) to attend with her. Little did they know the impact it would have.

In 2004, Matt was working as a software developer for TiVo. Microfinance was a word he'd never heard, but he decided to attend the Stanford event for Jessica's sake. After hearing Yunus speak, both Matt and Jessica knew they had something to contribute to the world. They didn't have a clear idea yet what that would be, but they brainstormed for a year before Kiva was finally launched.

During the first year of their marriage, Jessica spent several months in Africa. Matt decided to join her, and he was amazed at what he saw. It's common for Americans to get million dollar loans to start a business, but in the poorest parts of Africa, people need more like $100. With this money, they can become seamstresses, open bicycle repair shops, or provide food with a small retail store.

The drive to own a business and better your family's life is just as strong whether you're in a rich country or a poor one. Matt was an aspiring entrepreneur himself, so he immediately saw how much he had in common with the people he interviewed.

After returning to America, Matt Flannery and his wife, Jessica, faced negativity from people all around them. They were tired of brainstorming, and they were tired of listening to other people. They knew the only way to get their business off the ground was to take the first step. They built the Kiva website, and the rest, as they say, is history.

Today, www.Kiva.org is a phenomenal success. People around the world can apply for a loan, and individuals can lend as little as $25 to help them reach their goals. Profiles are set up, and stories are followed. When the loans are paid back your money can come back to you or be loaned to someone else. Over the past two years, Kiva's loans have totaled over $25 million to over 250,000 people. Now that's success!

About the Author

Matt Flannery has followed in the footsteps of Muhammad Yunus in making loans for people in impoverished countries. Go to Matt Flannery to learn how Kiva.Org utilizes the concept of microfinancing

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